What are the limitations of a mixed economy?

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02-09-2022
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What are the limitations of a mixed economy?

Sagot :

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tripatsingh039 tripatsingh039 · Answer 1 · 2022-09-08T08:21:17-04:00

Mixed Economy instils the dread of nationalisation. Because the private and public sectors coexist, the government might own and nationalise any industry.

Monopolies are indeed possible in a mixed economy. When the government may still centrally plan in specific industries while operating in a mixed economy, oligarchies or monopolies may arise. This is a common problem in the military companies that support the armed forces. A mixed economy is defined as an economic system that combines parts of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise. Forms of government are consistent with some type of mixed economy; the mixed economy is most usually linked with social democratic parties or nations governed by social democratic governments.

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What are the limitations of a mixed economy?

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